If you are considering entering the cryptocurrency market to trade, taking a few minutes to read this carefully might be helpful for you, and it could even prevent some significant losses.

To survive and thrive in the trading market, you need to invest time and effort into learning. Mastering the basics, analyzing market news, and understanding technical indicators are essential steps. Failing to conduct thorough research and reasonable financial planning will ultimately lead to capital loss. Many retail investors enter the market with high hopes, only to leave disappointed.

Some technical indicators remain popular over time because they do indeed have their value. For example, MACD divergence, KDJ overbought/oversold conditions, and support and resistance levels can provide a certain sense of direction, even though they cannot guarantee profits.

In the cryptocurrency market, the key to growing wealth from a small starting capital lies in the "rolling position" strategy. Suppose you have a capital of 1 million; once the spot price rises by 20%, your profit would be 200,000, which is already the annual income for many people.

Do not always think about making tens of millions or even hundreds of millions; start from reality. Learn to assess the size of opportunities; do not always trade lightly nor heavily. You can use small positions to test the market and go all in when a big opportunity arises.

The "rolling position" strategy should only be used in specific situations, and succeeding a few times in your lifetime is enough. Here are situations suitable for using the rolling position strategy:

After a long period of sideways movement, volatility drops to a new low, and the market is about to choose a direction.

In a bull market, after a significant price increase, a pullback may present an opportunity to buy the dip.

When a major resistance or support level on a weekly chart is broken.

Other opportunities should be abandoned outside of these situations. So how do you specifically operate the rolling position strategy?

Adding to positions with unrealized gains: When you have already made a certain profit, you can consider buying again to increase your position, but you must ensure that the cost decreases and the risk subsequently reduces. Do not blindly add to positions just because you see a profit; find the right timing.

Base position + trading the rolling position: Divide the capital into several parts, keeping one part as the base position untouched, while the remaining part is used for buying high and selling low. How to allocate this depends on personal preference and capital amount.